Recently,a Case of Food Poisoning Was Traced to a Particular

question 100

Multiple Choice

Recently,a case of food poisoning was traced to a particular restaurant chain.The source was identified and corrective actions were taken to make sure that the food poisoning would not reoccur.Despite the response from the restaurant chain,many consumers refused to visit the restaurant for some time after the event.A survey was conducted three months after the food poisoning occurred,with a sample of 319 patrons contacted.Of the 319 contacted,29 indicated that they would not go back to the restaurant because of the potential for food poisoning.What sample size would be needed in order to be 99 percent confident that the sample proportion is within .02 of ρ,the true proportion of customers who refuse to go back to the restaurant?

• A)14
• B)38
• C)129
• D)1,371
• E)1,777

---

Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market; it measures the total benefit to society from the production and consumption of goods and services.

AC

Average Cost, which is the total cost of production divided by the quantity of output produced.

Monopolist

A single seller in a market who has significant market power and can influence the price and quantity of goods or services.

AC

Average Cost; the total cost of production divided by the quantity produced, indicating the cost per unit of output.